WHAT IS A STRATA WIND UP?
As more and more strata buildings reach the end of their useful life, and with rapidly rising land values and a diminishing land supply in Metro Vancouver, the termination of a Strata Corporation can often make financial sense to its owners.
Several years ago members within The Golden Key Group recognized the pace of urbanization Metro-Vancouver is experiencing. The Group decided to augment service and focus attention on strategic land planning and development that aligns with the overall “vision” held by the various stakeholders and groups involved.
The Group’s Commercial & Investment Division was established.
Its mandate is to:
1) Seek out land for densification and redevelopment opportunities.
2) Assess and advise property owners of the “highest and best use” of their property.
3)Translate “highest and best use” into Market Value.
These Strata Communities came to our attention in 2017. It’s the Golden Key Group IC&I Division’s opinion that both the Strata Corporation and the Strata Owners would benefit from a “highest and best use” assessment. The objective is to determine the underlying redevelopment value for the purpose of a sale and a Termination of Winding-up the Strata Corporation.
An aging strata building can place heavy burdens on both the Contingency Fund Account and the Operating Budget. The result is ever increasing strata fees and/or special assessments to finance repairs and improvements.
The point in time has arrived when owners are no longer able or interested in carrying the actual or inherent costs associated with both functional and physical depreciation especially if these costs outweigh the benefits derived from redevelopment.
The market value per strata unit, by winding-up a strata corporation for development purposes, is greater than the market value or an individual strata unit.